From 6 to 7 Figures - Scaling Strategies

When it comes to scaling e-commerce businesses from 6 to 7 figures, it’s important to consider holistic strategies that go beyond paid ads. Here are some comprehensive scaling strategies that touch on various aspects of the business, including products, pricing, marketing, and operations:

The Ansoff Matrix

Using your existing products - 

1. market penetration (i.e. sell more to existing audience/market)
2. Market development (sell to new markets ie. new countries / B2B - wholesale)

New products:

1. New products to existing markets/customers
2. Diversification - new products to new markets (ie branching into menswear)

1. Optimise Your Product Range

• Strategy: Focus on refining and expanding your product mix to increase average order value (AOV) and customer lifetime value (CLV)—a crucial step for scaling from 6 to 7 figures.
• Tactics:
• Introduce Upsell and Cross-Sell Products: Add complementary items or bundles that encourage customers to buy more. For example, if a customer purchases a dress, suggest matching accessories at checkout.
• Expand Hero Products into a Collection: If a specific product is a bestseller, consider creating variations (e.g., new colours, limited editions, or a premium version) to build a product line around it.
• Cut Low-Performing Products: Regularly review sales data to identify and phase out products that don’t contribute significantly to revenue or profit.

2. Implement Tiered Pricing & Bundling Strategies

• Strategy: Use pricing tactics to drive higher average order value (AOV) and appeal to different customer segments, key moves when scaling from 6 to 7 figures.
• Tactics:
• Offer Tiered Pricing: Provide discounts for buying in bulk or multiple units (e.g., buy two, get one free) to encourage customers to spend more.
• Create Product Bundles: Group products together as a discounted bundle, providing value to customers while increasing your overall sales per transaction.
• Introduce Subscription Models: For consumable or repeat-purchase products, consider a subscription option where customers can sign up for automatic replenishments at a discounted rate.

3. Invest in Brand Storytelling and Content Marketing

• Strategy: Strengthen your brand positioning and build a deeper connection with your audience through storytelling and content that aligns with their values.
• Tactics:
• Develop a Content Plan: Share the story behind your products, highlight sustainability efforts, or showcase customer success stories. This can be done through blogs, email marketing, social media, and video content.
• Leverage User-Generated Content (UGC): Encourage customers to share photos and reviews of your products in action. Feature these on your website, social media, and email campaigns to build social proof.
• Create Educational Content: Publish guides or how-tos related to your products (e.g., "How to Style Your Resort Wear for a Summer Getaway") to provide value beyond the sale and position your brand as an authority.

4. Enhance Customer Retention and Loyalty Programs

• Strategy: Focus on retaining existing customers and encouraging repeat purchases, an essential approach when scaling from 6 to 7 figures, as acquiring new customers often costs more than keeping current ones.
• Tactics:
• Launch a Loyalty Program: Reward repeat customers with points for every purchase, redeemable for discounts or free products. Offer exclusive benefits like early access to new collections.
• Implement Post-Purchase Email Flows: Follow up with customers after a purchase with thank-you emails, product care tips, or related product recommendations to encourage a second purchase.
• Re-engage Inactive Customers: Use win-back email campaigns with special offers to bring lapsed customers back.

5. Diversify Marketing Channels

• Strategy: Relying solely on one marketing channel can be risky. To successfully scale from 6 to 7 figures, expand your reach and reduce risk by diversifying your marketing efforts across multiple platforms.
• Tactics:
• Invest in SEO and Content Marketing: Optimise your website for search engines to drive organic traffic. Create high-quality, keyword-rich content that targets your ideal customers’ search queries.
• Expand to Marketplaces: Consider selling your products on platforms like Amazon, eBay, or local marketplaces to reach a wider audience.
• Collaborate with Influencers or Ambassadors: Partner with influencers or brand ambassadors in your niche to amplify your brand reach and drive traffic.

6. Optimise Your Operations for Scalability From 6 to 7 Figures

• Strategy: Streamline and automate operations to manage increased order volume efficiently while maintaining quality and customer service.
• Tactics:
• Automate Fulfilment Processes: Use software to integrate orders from various channels and automate fulfilment, inventory updates, and shipping notifications.
• Outsource or Expand Warehousing: As order volume grows, consider outsourcing fulfilment to a third-party logistics provider (3PL) or investing in larger warehouse space.
• Enhance Customer Service Capabilities: Implement live chat or chatbots on your website to handle common customer queries quickly. Train customer service teams to manage higher volumes while maintaining a high level of service.

7. Data-Driven Decision Making

• Strategy: Use analytics and data to guide your scaling efforts and identify the highest growth potential areas, crucial when growing from 6 to 7 figures.
• Tactics:
• Track Key Performance Indicators (KPIs): Monitor metrics such as customer acquisition cost (CAC), customer lifetime value (CLV), and conversion rates to assess performance and identify areas for improvement.
• Segment Your Customer Base: Use customer data to create targeted marketing campaigns based on purchasing behaviour, preferences, or demographics.
• Run A/B Testing: Test different website layouts, email subject lines, or product descriptions to find out what resonates best with your audience.

These strategies provide a comprehensive approach to scaling an e-commerce business by addressing not only marketing but also product offerings, pricing models, operations, and customer engagement.